Slide 1: Lendlease Group 2019 Full Year Results Announcement, Presentation and Appendix
19 August 2019 Lendlease Group 2019 Full Year Results Announcement, Presentation and Appendix Lendlease Group today announced its results for the year ended 30 June 2019. Attached is the FY19 Results Announcement, Presentation and Appendix. ENDS FOR FURTHER INFORMATION, PLEASE CONTACT: Investors: Me
Slide 2: Lendlease's core business strengthens with ~$100 billion development pipeline
19 22 August 2019 2018 Lendlease’s core business strengthens with ~$100 billion development pipeline For the full year ended 30 June 2019: • Profit after Tax of $467 million and earnings per stapled security of 82.4 cents • Full year distributions of 42 cents per stapled security Non core business (
Slide 3: Urbanisation strategy and non core business update
19 22 August 2019 2018 “We are very pleased with the continued success of our urbanisation strategy, with our development pipeline now approaching $100 billion in project value underpinning a very strong long term outlook.” Non core business update The result for the Non core business includes a $50
Slide 4: Growing international pipeline delivering results
19 22 August 2019 2018 While this is important for the future, the growing international pipeline is already delivering tangible results, with significant contributions in the year from the Group’s projects in Asia and the Americas. Completion of the office precinct at Paya Lebar Quarter in Singapor
Slide 5: Disciplined capital allocation and outlook
19 22 August 2019 2018 “The Group has been disciplined in its strategy to allocate more capital to international urbanisation projects. Greater returns are now being generated on this capital and we expect our international regions to deliver a larger contribution to Group earnings in future years,”
Slide 6: Full Year Results
The Exchange, Darling Square, Sydney 2019 Full Year Results 19 August 2019
Slide 7: Acknowledgement of Country
Acknowledgement of Country As a developer, builder and manager of assets on land all over Australia, we pay our respect to the traditional owners, especially their elders past and present, and value their custodianship of these lands.
Slide 8: Group Performance
Artist’s impression: Silvertown Quays, London Group Performance Steve McCann Group Chief Executive Officer and Managing Director Image subject to change and further design development and planning approval
Slide 9: Value creation: non financial focus areas
Lendlease FY19 Financial Results / 4 Value creation: non financial focus areas Health and Safety Our People Our Customers Sustainability Health and Safety is our Our people are the greatest Designing and delivering We pride ourselves on number one priority. We contributors to our success innovative,
Slide 10: Non core business update
Lendlease FY19 Financial Results / 5 Non core business update Engineering and Services: FY19 outcomes • FY19 EBITDA loss of $461m: − Includes $500m pre tax provision from underperforming projects accounted for in HY19 • The provision primarily related to three underperforming engineering projects: −
Slide 11: Our approach
Lendlease FY19 Financial Results / 6 Our approach
Slide 12: FY19 Result
Lendlease FY19 Financial Results / 7 FY19 Result Securityholder returns1 • Profit after Tax of $467m, Earnings per stapled security of 82.4 cents, Return on Equity of 7.4%2 • Full year distributions of 42 cents per security, representing a payout ratio of 50.7% on Profit after Tax • Core Business: −
Slide 13: Core business strengthens with ~$100b pipeline
Lendlease FY19 Financial Results / 8 Core business strengthens with ~$100b pipeline Executing on our strategy • c.$27 billion1 of urbanisation projects secured – four projects, four cities: − San Francisco Bay Area project: $20b2,3 − Milan Innovation District: $3.6b3 − Lakeshore East, Chicago: $2.1b
Slide 14: Urbanisation pipeline to drive future growth
Lendlease FY19 Financial Results / 9 Urbanisation pipeline to drive future growth Urbanisation pipeline ($b) Urbanisation production rate expected to accelerate • Production has averaged ~$4b p.a. in recent years • Pipeline implies >20 years of supply at current production rate: 1 81.2 − Target 1,00
Slide 15: Financial Performance
Artist’s impression: Southbank, Chicago Financial Performance Tarun Gupta Group Chief Financial Officer Image subject to change and further design development and planning approval
Slide 16: Financial performance
Lendlease FY19 Financial Results / 11 Financial performance $m FY18 FY19 Change Core • Strong residential for sale apartment settlements; PLQ office; Development 673 793 18% US residential investment partnership Construction 296 211 (29%) • EBITDA margin 2.2% • Higher Australian investment income, s
Slide 17: Cash flow movements
Lendlease FY19 Financial Results / 12 Cash flow movements ($b)1 • Five year cash conversion 85%2 Operating and Investing inflows: • Apartment settlements $1.4b5 • FY19 cash conversion 36%2,5 • Other urbanisation $1.2b • Communities $0.7b • Divestment of Barangaroo office investments $0.5b • Resident
Slide 18: Financial position
Lendlease FY19 Financial Results / 13 Financial position $m FY18 FY19 Key areas of capital employed Assets • Development inventories of $4.4b Cash and cash equivalents 1,177 1,290 • Investments of $3.7b including: Inventories 5,546 5,583 − $1.7b co-investments Equity accounted investments 2,627 3,45
Slide 19: Portfolio Management Framework
Lendlease FY19 Financial Results / 14 Portfolio Management Framework EBITDA mix Invested capital By segment By region 18% 33% 43% 45% $1,493m¹ $8.4b² $7.9b² 53% 57% 22% 14% 15% Target weighting Development Construction Investments Development Investments Australia Asia Europe Americas (40 - 50%) (10
Slide 20: Operational Update
Artist’s impression: The Exchange TRX, Kuala Lumpur Operational Update Steve McCann Group Chief Executive Officer and Managing Director Image subject to change and further design development and planning approval
Slide 21: Development segment
Lendlease FY19 Financial Results / 16 Development segment Development performance1 EBITDA ($m) • EBITDA $793m FY18 FY19 • ROIC 11.6%, invested capital $4.8b 793 • Pipeline $76.1b 673 • Australia: 551 556 − EBITDA driven by strong residential for sale apartments result − Communities: subdued market c
Slide 22: Development segment – Residential
Lendlease FY19 Financial Results / 17 Development segment – Residential Residential performance1 Apartment settlements2 Apartment pipeline4 Apartments Target 1,000 – 2,000 units For sale secured • Significant residential for sale apartment settlements including: Apartments for rent For rent secured
Slide 23: Development segment – Commercial
Lendlease FY19 Financial Results / 18 Development segment – Commercial Commercial performance1 Commercial building completion profile4 • Major office developments completed, 164,000 sqm, c.$2.9b2: By total estimated end value ($b) − Paya Lebar Quarter, Singapore: 83,000 sqm Daramu House, Barangaroo
Slide 24: Core Construction segment
Lendlease FY19 Financial Results / 19 Core Construction segment Performance1 EBITDA ($m) • Global EBITDA margin 2.2%, EBITDA of $211m • Backlog revenue of $15.6b FY18 FY19 296 • Australia: − Strong revenue growth of 8% to $4.1b 211 195 − EBITDA margin five year avg. c.4% 126 − New work secured $4.5b
Slide 25: Investments segment
Lendlease FY19 Financial Results / 20 Investments segment Performance1 Investments EBITDA by activity ($m) Ownership earnings FY18 FY19 • EBITDA $345m, lower revaluations compared to prior year 536 • $1.7b of co-investments: − Higher income from Australian office portfolio 345 − Asset value apprecia
Slide 26: Outlook
Artist’s impression: Lakeshore East, Chicago Outlook Steve McCann Group Chief Executive Officer and Managing Director Image subject to change and further design development and planning approval
Slide 27: Outlook
Lendlease FY19 Financial Results / 22 Outlook Strongly positioned for long term growth • Development pipeline approaching $100b1: − Urbanisation capabilities increasingly being recognised as world leading − 211 major urbanisation projects across 10 gateway cities − Scale platform in the US – achieve
Slide 28: Earnings visibility from strong pipeline across all segments
Lendlease FY19 Financial Results / 23 Earnings visibility from strong pipeline across all segments Development pipeline Construction backlog revenue Funds under management $76.1b $15.6b $35.2b Development pipeline Construction backlog revenue Funds under management ($b) ($b) ($b) Urbanisation Commun
Slide 29: Questions
Artist’s impression: Milan Innovation District Questions Image subject to change and further design development and planning approval
Slide 30: Full Year Results Appendix
Image: The Exchange, Darling Square, Sydney 2019 Full Year Results Appendix 19 August 2019
Slide 31: Overview
Artist’s Impression: Milan Innovation District Overview Image subject to change and further design development and planning approval
Slide 32: Our business model
Lendlease FY19 Financial Results / 3 Our business model Our business model is how we generate earnings The model is integrated when more than one segment is engaged on a single project Development segment Construction segment Investments segment Development of communities, inner Project management,
Slide 33: Globally diverse pipeline
Lendlease FY19 Financial Results / 4 Globally diverse pipeline Our globally diverse pipeline provides long term earnings visibility $96.1b1 $15.6b $35.2b $3.7b Development Construction Funds Under Investments Pipeline2 backlog revenue3 Management (FUM) Americas Europe Asia Australia $27.7b1 Developm
Slide 34: Global trends influencing our strategy
Lendlease FY19 Financial Results / 5 Global trends influencing our strategy Global Urbanisation infrastructure Funds Growth Today, 55% of the world’s population lives in Global infrastructure spending is estimated Global assets under management are urban areas, and that’s expected to increase to ris
Slide 35: Sustainability
Lendlease FY19 Financial Results / 6 Sustainability The Task Force on Climate-related MSCI is an independent provider of UN Global Compact is a voluntary initiative Financial Disclosure (TCFD) provides a research-driven insights and tools for based on CEO commitments to implement voluntary framework
Slide 36: Portfolio Management Framework
Lendlease FY19 Financial Results / 7 Portfolio Management Framework1 Business model • Integrated model synergies • Target EBITDA mix: o Development 40 - 50% o Construction 10 - 20% o Investments 35 - 45% Capital allocation 2 Target returns • Focused on gateway cities • Group ROE 10 - 14% • 50 - 70%
Slide 37: Group
Artist’s Impression: Southbank, Chicago Group Image subject to change and further design development and planning approval
Slide 38: Income Statement
Lendlease FY19 Financial Results / 9 Income Statement $m FY18 FY19 1 Revenue from contracts with customers 16,422 16,386 1 Other revenue 134 152 Cost of sales (15,038) (15,438) Gross profit 1,518 1,100 Share of profit of equity accounted investments 131 338 Other income 496 295 Other expenses (1,007
Slide 39: Statement of Financial Position
Lendlease FY19 Financial Results / 10 Statement of Financial Position $m FY18 FY19 $m FY18 FY19 Current Assets Current Liabilities Cash and cash equivalents 1,177 1,290 Trade and other payables 5,770 5,724 Loans and receivables 2,670 2,050 Provisions 330 332 Inventories Borrowings and financing arra
Slide 40: Statement of Cash Flows
Lendlease FY19 Financial Results / 11 Statement of Cash Flows $m FY18 FY19 Cash Flows from Operating Activities Cash receipts in the course of operations 16,354 17,026 Cash payments in the course of operations (16,216) (16,902) Interest received 13 13 Interest paid (122) (152) Dividends/distribution
Slide 41: Underlying operating cash flow
Lendlease FY19 Financial Results / 12 Underlying operating cash flow Cash conversion (FY15 – FY19) ($m) • Underlying operating cash flow has been included Total conversion against EBITDA of 85% to provide a more accurate cash comparator against Group EBITDA Cash 39% 157% 104% 73% 36% • This represen
Slide 42: FY19 underlying operating cash flow
Lendlease FY19 Financial Results / 13 FY19 underlying operating cash flow In FY19 Lendlease delivered underlying operating cash flow of $0.3b Overview $m Statutory Adjustments Underlying • Underlying operating cash flow is Cash Flows from Operating Activities derived by adjusting statutory cash flow
Slide 43: Core segment financial metrics
Lendlease FY19 Financial Results / 14 Core segment financial metrics Operating Profit after Tax ($m) Operating EBITDA ($m) FY18 FY19 FY18 FY19 793 673 669 554 492 494 489 368 296 189 211 141 Development Investments Construction Development Investments Construction ROIC1 (Development and Investments)
Slide 44: Segment and regional financial metrics
Lendlease FY19 Financial Results / 15 Segment and regional financial metrics By segment Revenue ($m) EBITDA ($m) Profit after Tax ($m) Invested capital ($b) FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19 Development 3,204 3,355 673 793 492 554 4.3 4.8 Investments 394 348 669 489 494 368 3.3 3.6 Constructio
Slide 45: Revenue and EBITDA by segment and region
Lendlease FY19 Financial Results / 16 Revenue and EBITDA by segment and region $m Revenue EBITDA Operating EBITDA by segment ($m) FY18 FY19 FY18 FY19 FY18 FY19 Development Australia 2,856 2,712 551 556 Asia 67 18 27 121 Europe 198 544 110 37 793 673 669 Americas 83 81 (15) 79 489 Total Development 3
Slide 46: Revenue/EBITDA by segment and region, local currency
Lendlease FY19 Financial Results / 17 Revenue/EBITDA by segment and region, local currency Asia Operating EBITDA, local currency (m) SGDm¹ Revenue EBITDA FY18 FY19 FY18 FY19 FY18 FY19 165 Development 70 17 28 117 117 101 Construction 557 390 16 (1) 57 49 Investments 51 61 57 49 28 16 Total Operating
Slide 47: Exchange rates
Lendlease FY19 Financial Results / 18 Exchange rates Income Statement Statement of Financial Position 1 2 Local Foreign FY18 FY19 Local Foreign FY183 FY194 AUD USD 0.77 0.71 AUD USD 0.74 0.70 AUD GBP 0.57 0.55 AUD GBP 0.56 0.55 AUD SGD 1.04 0.97 AUD SGD 1.01 0.95 FX sensitivity USD GBP SGD FY19 Inco
Slide 48: FY19 regional EBITDA to PAT reconciliation
Lendlease FY19 Financial Results / 19 FY19 regional EBITDA to PAT reconciliation $m EBITDA Net interest D&A1 PBT Tax PAT Australia Development 556 2 (6) 552 (157) 395 Construction 126 - (5) 121 (37) 84 Investments 330 - (5) 325 (60) 265 Total Australia 1,012 2 (16) 998 (254) 744 Asia Development 121
Slide 49: Debt metrics
Lendlease FY19 Financial Results / 20 Debt metrics FY18 FY19 Net debt $m 1,182 1,425 Borrowings to total equity plus borrowings % 26.9 29.9 Net debt to total tangible assets, less cash % 8.2 9.9 Interest cover1 times 10.7 8.8 Average cost of debt % 4.8 4.0 Average debt maturity years 4.6 4.8 Average
Slide 50: Debt facilities and maturity profile
Lendlease FY19 Financial Results / 21 Debt facilities and maturity profile Debt facilities1 ($m) Drawn Facility 1,800 960 727 725 543 543 567 567 303 303 314 314 110 145 Australian medium Syndicated Cash UK Bond Issue Club Revolving Asia Loan US $ Reg. S notes Singapore Bond term notes Advance Facil
Slide 51: Key dates for investors
Lendlease FY19 Financial Results / 22 Key dates for investors Date FY19 results released to market / final distribution declared 19 August 2019 Securities quoted ex distribution on the Australian Securities Exchange 23 August 2019 Final distribution record date 26 August 2019 Final distribution paya
Slide 52: Development Segment
Artist's Impression: Victoria Cross, Sydney Development Segment Image subject to change and further design development and planning approval
Slide 53: Earnings drivers - Development
Lendlease FY19 Financial Results / 24 Earnings drivers - Development ROIC target 10-13%1; Invested capital $4.8b; Pipeline2,3 $76.1b Urbanisation Communities Telco Infrastructure Military Infrastructure Development Housing 203 major projects in 16 communities 10 gateway cities projects across Austra
Slide 54: Development FY19
Lendlease FY19 Financial Results / 25 Development FY19 Overview Performance FY18 FY19 • Involved in the development of communities, inner city mixed use Core business EBITDA mix % 41 53 developments, apartments, retirement, commercial assets, and social ROIC % 13.4 11.6 and economic infrastructure I
Slide 55: Development earnings / pipeline
Lendlease FY19 Financial Results / 26 Development earnings / pipeline EBITDA by region ($m) Pipeline1 by region ($b) FY18 FY19 FY18 FY19 793 76.1 673 71.1 551 556 34.1 29.7 29.3 29.3 121 110 79 6.9 5.0 5.2 7.7 27 37 (15) Australia Asia Europe Americas Total Australia Asia Europe Americas Total FY19
Slide 56: Residential development
Lendlease FY19 Financial Results / 27 Residential development Communities settlements1 FY19 Apartment settlements1 FY18 FY19 Units $m Lots $m Lots $m Apartments for sale QLD 1,433 303 530 117 Australia NSW 964 348 449 109 Darling Square - Darling North, Harbour Place and 577 808 Trinity House VIC 1,
Slide 57: Non residential development commencements and completions
Lendlease FY19 Financial Results / 28 Non residential development commencements and completions City Project Building Sector Capital model End value1 ($b) sqm ‘000 Commercial completions Melbourne Victoria Harbour 839 Collins Street Office Fund through 0.4 40 Melbourne Melbourne Quarter One Melbourn
Slide 58: Residential apartments
Lendlease FY19 Financial Results / 29 Residential apartments1 Movement in presales – Apartments for sale By units By value ($m) Australia Asia Europe Americas Australia Asia Europe Americas 425 (1,623) 482 (2,065) 3,530 3,436 100 169 1,243 (109) 885 2,223 112 464 58 1,911 386 150 1,013 732 1,801 423
Slide 59: Residential communities
Lendlease FY19 Financial Results / 30 Residential communities Movement in presales1 By lots By value ($m) Australia Americas Australia Americas 1,568 (2,523) 378 (566) 3,231 813 625 2,276 FY18 Sales Settlements² FY19 FY18 Sales Settlements² FY19 1. Includes 100% of revenue from joint venture project
Slide 60: Pipeline provides long term earnings visibility
Lendlease FY19 Financial Results / 31 Pipeline provides long term earnings visibility Record secured pipeline1 of $76.1b controlled by invested capital of $4.8b Target annual Apartments turnover2 1,881 presold units and 1,533 units for rent across 17 major apartment buildings 3 in delivery, expected
Slide 61: Major urbanisation project summary
Lendlease FY19 Financial Results / 32 Major urbanisation project summary Residential Commercial Remaining Project Delivery Completion backlog backlog end value Land payment Region Project secured commenced1 date2 units sqm ‘0003 ($b)4 model Australia Barangaroo South, Sydney FY09 FY12 FY24 808 12 3.
Slide 62: Apartments settlement profile
Lendlease FY19 Financial Results / 33 Apartments settlement profile Total Units Presales2 Delivery 2 City Project Building units Ownership Presold presold ($b) date3 Residential for sale apartments Melbourne Victoria Harbour Collins Wharf 1 321 100% 95%1 47 0.1 FY19 / FY20 Singapore Paya Lebar Quart
Slide 63: Commercial buildings completion profile
Lendlease FY19 Financial Results / 34 Commercial buildings completion profile City Project Capital model sqm '0001 Building Completion date2 Sydney Barangaroo South Fund through3 11 Daramu House FY20 Singapore Paya Lebar Quarter Joint venture 29 Retail FY20 3 London International Quarter London Fund
Slide 64: Conversion of secured pipeline
Lendlease FY19 Financial Results / 35 Conversion of secured pipeline Indicative conversion timing of secured commercial pipeline to FY24 City Project # Buildings Sector sqm ‘0001 FY20 FY21 FY22 FY23 FY24 Melbourne Melbourne Quarter 2 Office/Retail 71 Sydney Victoria Cross 1 Office 58 Brisbane Brisba
Slide 65: Communities projects
Lendlease FY19 Financial Results / 36 Communities projects Residential Commercial Land payment Completion backlog land backlog Project Location model date1 lots2 sqm ‘0003 Communities Yarrabilba QLD Staged payment FY47 14,105 2,046 Elliot Springs QLD Land management FY61 10,605 1,050 Springfield Lak
Slide 66: Development deal structuring tailored to local market
Lendlease FY19 Financial Results / 37 Development deal structuring tailored to local market Urbanisation Communities Apartments for Sale Forward sale Joint venture structure • Office: Daramu House, Barangaroo South, Sydney • Paya Lebar Quarter, • St Marys - Jordan Springs, Project • Darling Square,
Slide 67: Land payment models
Lendlease FY19 Financial Results / 38 Land payment models1 Overview of land payment / structuring models and implication for timing and risk share More price certainty to More development risk and land owner value share to land owner Land payment Upfront payment Staged payment Land management model
Slide 68: Construction Segment
Artist's Impression: Sydney Metro Martin Place Integrated Station Development Construction Segment Image subject to change and further design development and planning approval
Slide 69: Earnings drivers - Construction
Lendlease FY19 Financial Results / 40 Earnings drivers - Construction EBITDA margin target 2-3%1; Core backlog $15.6b Core Construction Non Core Region Australia Asia Europe Americas Australia Revenue last 12 months $4.1b $0.4b $0.9b $4.3b $3.1b realisation Backlog FY20 47% FY20 65% FY20 58% FY20 59
Slide 70: Core construction FY19
Lendlease FY19 Financial Results / 41 Core construction FY19 Overview Performance FY18 FY19 • Provides project management, design and construction services, EBITDA mix % 18 14 predominantly in the defence, mixed use, commercial and residential EBITDA margin % 3.1 2.2 sectors New work secured $b 10.0
Slide 71: Core construction earnings
Lendlease FY19 Financial Results / 42 Core construction earnings EBITDA ($m) EBITDA margin FY18 FY19 FY18 FY19 296 5.2% 4.3% 211 195 3.1% 3.3% 3.1% 2.8% 126 2.2% 1.4% 63 1.1% 40 46 15 23 (1) (0.2%) Australia Asia Europe Americas Total Australia Asia Europe Americas Total EBITDA Europe (£m1) EBITDA A
Slide 72: Core construction backlog
Lendlease FY19 Financial Results / 43 Core construction backlog Backlog ($b) FY19 backlog by region Australia Asia Europe Americas 15.2 15.7 15.2 15.6 13.7 40% 44% $15.6b 11% 5% FY15 FY16 FY17 FY18 FY19 FY19 backlog by client FY19 backlog by sector Transport Residential Hotel/Entertainment Lendlease
Slide 73: Core construction backlog by region
Lendlease FY19 Financial Results / 44 Core construction backlog by region Group ($b) Australia ($b) 9.9 (9.7) 4.5 (4.1) 15.2 0.2 15.6 6.5 - 6.9 Book to bill¹: 1.0 Book to bill¹: 1.1 FY18 New work Revenue FX and FY19 FY18 New work Revenue Other FY19 secured realised Other secured realised Europe ($b)
Slide 74: Australia: Major Projects
Lendlease FY19 Financial Results / 45 Australia: Major Projects1,2 Contract Contract Secured Completion Project Location type3 value4 ($m) date date5 Sector Crown Sydney Hotel Resort NSW MC 1,081.7 FY15 FY21 Hotel/Entertainment AIR 7000 Phase 2B SA MC 470.0 FY16 FY20 Defence Victoria Cross Integrate
Slide 75: Asia and Europe: Major Projects
Lendlease FY19 Financial Results / 46 Asia: Major Projects1,2 Contract Contract Secured Completion Project Location type3 value 4 ($m) date date5 Sector Paya Lebar Quarter Singapore GMP 860.5 FY16 FY20 Commercial and Residential The Exchange TRX (formerly The Lifestyle Kuala Lumpur MC 521.9 FY18 FY2
Slide 76: Americas: Major Projects
Lendlease FY19 Financial Results / 47 Americas: Major Projects1,2 Contract Contract Secured Completion Project Location type3 value 4 ($m) date date5 Sector Jacob K. Javits Convention Center New York LS 870.3 FY17 FY21 Hotel/Entertainment New York Methodist Hospital New York CM 444.4 FY16 FY20 Socia
Slide 77: Non Core: Major Projects – Engineering
Lendlease FY19 Financial Results / 48 Non Core: Major Projects – Engineering1,2 Contract Contract Secured Completion Project Location type3 value 4 ($m) date date5 Sector Melbourne Metro Tunnel Project VIC D&C 1,746.7 FY18 FY24 Transport NorthConnex M1 / M2 Tunnel NSW D&C 1,314.0 FY15 CY20 Transport
Slide 78: Investments Segment
Artist’s impression: Elephant Park, London Investments Segment Image subject to change and further design development and planning approval
Slide 79: Earnings drivers - Investments
Lendlease FY19 Financial Results / 50 Earnings drivers - Investments ROIC target 8-11%1; Invested capital $3.6b Ownership Earnings Operating Earnings Capital intensive activities Capital light activities Invested capital Funds Retail and FUM / Assets Co-investment Retirement US Military US Telco Mil
Slide 80: Investments FY19
Lendlease FY19 Financial Results / 51 Investments FY19 Overview Performance FY18 FY19 • Owns and/or manages investments including a leading wholesale Core business EBITDA mix % 41 33 investment management platform and also includes the Group’s ROIC % 15.5 10.8 ownership interests in co-investments,
Slide 81: Investments earnings / ownership
Lendlease FY19 Financial Results / 52 Investments earnings / ownership EBITDA by region ($m) Investments EBITDA by activity ($m) FY18 FY19 FY18 FY19 536 669 483 489 345 330 133 144 124 100 55 50 7 9 Australia Asia Europe Americas Total Ownership interests¹ Operating earnings² Investments3 by product
Slide 82: Funds Under Management (FUM)
Lendlease FY19 Financial Results / 53 Funds Under Management1 (FUM) FUM ($b) CAGR² of 13.4% 35.2 30.1 26.1 23.6 21.3 FY15 FY16 FY17 FY18 FY19 FY19 FUM by asset class FY19 FUM by region Retail Office Industrial Residential Other Australia Asia Europe Americas 3% 2% 4% 2% 3% 23% 42% $35.2b $35.2b 50%
Slide 83: FUM by region
Lendlease FY19 Financial Results / 54 FUM1 by region Group ($b) Australia ($b) 2.0 0.3 35.2 1.9 (0.5) 1.0 - 24.8 3.7 (0.9) 22.4 30.1 FY18 Additions Divest- Revaluations FX and FY19 FY18 Additions Divest- Revaluations Other FY19 ments Other ments Asia ($b) Europe ($b) 0.8 0.3 8.2 1.2 (0.4) 0.1 - 1.5
Slide 84: FUM by region
Lendlease FY19 Financial Results / 55 FUM1 by region Australia FUM Fund type Asset class FY18 ($b) FY19 ($b) Australian Prime Property Fund Retail Core Retail 5.4 5.7 Australian Prime Property Fund Commercial Core Office 4.6 5.1 Lendlease International Towers Sydney Trust Core Office 4.1 4.6 Managed
Slide 85: Major fund summary
Lendlease FY19 Financial Results / 56 Major fund summary1 FY19 funds management platform ARIF7 1 ARIF7 3 APPFR2 APPFC3 APPFI4 LLITST5 LLOITST6 (Somerset) (Jem) PPPL8 LLRP9 Total assets $b 5.7 5.1 1.0 4.6 2.7 0.9 1.8 1.5 1.2 Gearing % 19.3 5.5 6.1 13.6 18.4 59.6 40.1 35.8 - Co-investment % 1.7 8.0 10
Slide 86: Investments
Lendlease FY19 Financial Results / 57 Investments1 Australia co-investments FY19 Lendlease interest FY18 ($m) FY19 ($m) Australian Prime Property Fund Commercial 8.0% 292 369 2 Lendlease International Towers Sydney Trust 6.2% 515 238 Australian Prime Property Fund Industrial 10.5% 75 96 Craigieburn
Slide 87: Assets Under Management (AUM) by region
Lendlease FY19 Financial Results / 58 Assets Under Management (AUM)1 by region Retail and Office FY19 GLA2 sqm '000 FY18 ($b) FY19 ($b) Australia 785.5 7.3 7.5 Asia 369.0 4.6 7.2 Europe 141.7 0.8 0.7 Total 1,296.2 12.7 15.4 FY19 US Military Housing Avg portfolio life AUM ($b) Housing units Lodging u
Slide 88: Retirement summary
Lendlease FY19 Financial Results / 59 Retirement summary Value drivers1 FY18 FY19 Investment ($m) Long term growth rate % 3.5 3.5 Discount rate % 12.3 12.3 1,397 1,303 Average length of stay - ILUs years 11 11 Number of established units no. 12,717 12,785 Units resold no. 694 842 Development Pipelin
Slide 89: Important notice
Lendlease FY19 Financial Results / 60 Important notice This document (including the appendix) has been prepared and is issued by Lendlease Corporation Limited (ACN 000 226 228) (Lendlease) in good faith. Neither Lendlease (including any of its controlled entities), nor Lendlease Trust (together refe